For some business reasons the Company is unable to deduct tax at source on payment to a particular service provider. The authority has decided that they will voluntarily disallow the expenditure while income computation as there is no TDS. Can there be any other consequences apart from disallowance.
The Company has huge accumulated business loss - so a disallowance of odd Rs 3.5 lakhs will really not hit the Company.
The Company is ready to pay interest for non deduction of tax at source under section 201 if discovered by TDS wing of the DEpt.
Your thoughts please.
Regards,
CAclubindia
